Ghana’s Newest Entrepreneurial Wave: A Catalyst for Private Sector Development and Job Creation? Ernest Ortsin University of Ghana Presentation at ACRIA 4 Conference (July 4-5, 2013) Abidjan – La Cote d’Ivoire

Outline Abstract Introduction Literature Review GYEEDA Programme Discussion Conclusion

Abstract Through the Ghana Youth Employment and Entrepreneurial Agency, the government of Ghana has launched an ambitious programme aimed at equipping young people with skills to develop their own businesses. To date, more than 100,000 youth have received skills training as part of the programme. The expectation of the government is that, within a gestation period of five to ten years, the beneficiaries would nurture and grow small-scale enterprises that would eventually fledge out into full-scale private sector companies. But, in the face of globalization, and the challenge of cheap imports from emerging markets, how realistic is this projection? How sustainable is the programme which is now becoming donor-dependent? This paper takes a critical look at the entrepreneurial modules of the programme with the view to analyzing its ramifications for private sector development and job creation.

Ghana - Achievements Democratic Governance Free Media Stable Political Environment Positive International Image Growing Economy

Ghana – Challenges Youth Unemployment Urban Migration Informal Sector - based Economy Polarized Political Environment Unemployed Graduates Association of Ghana

Employment and Unemployment Statistics Economically active – 54.1% Public sector employment – 28.5% Private sector – 68.2% Urban unemployment – 8.9% Unemployment rate – 3.6% Youth unemployment 4.1% Apprenticeship – 2.3% Source: Ghana Statistical Service

Literature Review Jean Baptiste Say (1767 – 1832) Richard Cantillon (1680s – 1734) Jacques Turgot ( ) Joseph Schumpeter (1883 – 1950)

Entrepreneurship - Defined The function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on. (Schumpeter 1934, cited in Śledzik n.d. p. 92).

Contemporary Discussion Creativity Dedication Determination Flexibility Leadership Passion Self-confidence Smart

GYEEDA Programme Established in 2006 Formerly National Youth Employment Programme Restructured in 2012 Currently operating about 20 modules World Bank support for the entrepreneurial modules

Entrepreneurial Modules Youth in Transport Youth in Auto Mechanic Youth Enterprise and Skills Development Centre Youth in Agriculture Youth in Grass Cutter Rearing Youth in Bamboo Processing Youth in ICT, Mobile Phone Repairs and Sales Youth in Dressmaking Youth in Hairdressing Youth in Film Making

Features of the Modules Available in all Districts Absolutely Free of Charge Short-term Training Period Provision of Start-ups Flexible Loan Repayment

Achievements of the Modules In the first phase (2006–2009) it was subdivided into ten modules and spread across all the 138 Metropolitan/ Municipal/ Districts in the country. Agriculture –13,069 Education, forestry, resource mobilization -26,760 Health (auxiliary nursing) – 10, 850) Waste and sanitation – 4,550 Paid internship – 2,800 By the end of June 2012 – 457,779

Limitations Financial Resources Mass Recruitment Politicization No Ready Market Corruption Pre-defined Modules Non- Industrial Based Sustainability

Youth in Driving

Youth in Hairdressing

Youth in Dressmaking

Youth in ICT

Conclusion Excellent Programme Great Potential Limitations have to be dealt with Exportable to other countries

Thank You